Posts tagged ‘Guangdong’

22/12/2012

* Land grabs are main cause of mainland protests, experts say

If the new Chinese leadership is serious about improving the lives of its citizens and removing reasons to distrust the Party, this is one area it should concentrate on rather than reducing banquets and other ostentatious spending by officials and senior soldiers. The former affects people directly, the latter only peripherally.  Though eventually both must change.

SCMP: “Land seizures, pollution and labour disputes have been the three main causes of tens of thousands of mass protests in recent years, according to a top think-tank.

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In its 2013 Social Development Blue Book, released on Tuesday, the Chinese Academy of Social Sciences said the mainland was experiencing frequent social conflict because “social contradictions were diverse and complex”.

It said there had been more than 100,000 “mass incidents” – the central government’s term for large protests involving more than 100 people – every year in recent years.

Professor Chen Guangjing, editor of this year’s book, said that disputes over land grabs accounted for about half of “mass incidents”, while pollution and labour disputes were responsible for 30 per cent. Other kinds of disputes accounted for the remaining 20 per cent.

“Of the tens of thousands of incidents of rural unrest that occur each year in China, the vast majority of them result from land confiscations and home demolitions for development,” Chen told a news conference in Beijing yesterday.

Late last year, about 1,000 villagers from Wukan, Guangdong, rioted and overthrew corrupt local leaders who had profited from illegal sales of village land.

Chen said environmental concerns were also becoming a main cause of social unrest, as evidenced by a series of grass-roots demonstrations over polluting projects.

More than 20,000 people rallied in Xiamen, Fujian province, in June 2007 to protest against plans to build a chemical plant in the city.

The project was subsequently relocated and the Xiamen backdown sparked similar protests in several mainland cities.

The major cause of labour disputes was salary arrears. There over 120 protests that involved more than 100 workers each in the first eight months of this year.

Chen said courts and labour arbitration tribunals had dealt with 479,000 back-pay cases in the first nine months of this year.

The book says 120 million mainlanders are living under the poverty line – with per capita annual disposable income of less than 2,300 yuan (HK$2,830). The government last year raised the poverty line from the previous level of 1,200 yuan, set in 2008.

Professor Li Peilin, the blue book’s editor-in-chief, said household income growth had lagged far behind gross domestic product growth over the past decade.”

via Land grabs are main cause of mainland protests, experts say | South China Morning Post.

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29/09/2012

* All that glitters is sold

China Daily: “With the rapid development of China’s economy, Chinese consumers’ appetite for jewellery has continued to grow, resulting in consistent sales growth in the domestic market.

All that glitters is sold

In 2011, spending in China’s retail jewellery market reached 40 billion yuan ($6.3 billion), making it the world’s largest consumer market for platinum and jade, and the second-largest diamond jewellery consumer after the US. But in addition to being one of the world’s largest jewellery consumers, China has gradually emerged as a competitive jewellery maker in the international market.

In fewer than 20 years, China’s jewellery industry has grown rapidly, and Shenzhen, a booming city in South China’s Guangdong province, has played a crucial role in leading this industry.

Thanks to the influence of Hong Kong’s industry, the past two decades have seen Shenzhen evolve into China’s jewellery capital. Since the 1990s, the city has been acknowledged as China’s biggest jewellery manufacturing base and trade distribution center.

According to the Gems and Jewellery Trade Association of Shenzhen, more than 2,000 jewellery companies now call the city home, and their annual output value of more than 50 billion yuan accounts for more than 70 percent of China’s overall jewellery production. In fact, the sales revenue of Shenzhen’s jewellery enterprises is not just ranked first in terms of domestic market share, it makes up about one-third of China’s total.

But jewellers in Shenzhen are no longer content to remain the largest outsourcing base for brands from Hong Kong or other parts of the world. They are trying to reshape old business models by investing heavily in branding their own independently designed products, aspiring to upgrade Shenzhen from an international hub of original equipment manufacturers to the birthplace of famous jewellery brands.

Some jewellers in Shenzhen have taken the lead in brand-building campaign. One of the most successful is Chow Tai Seng Jewelry Co Ltd, a large jewellery producer based in the city.

Established in 1966, Chow Tai Seng Jewelry is now one of the largest diamond-jewellery retailers and wholesalers in China. It currently has the largest jewellery chain in the country, with more than 2,000 shops in more than 300 Chinese cities.

The company posted sales revenue of 13 billion yuan (US$2 billion) in 2011, accounting for 7.1 percent of the market. Zhou Zongwen, board chairman of Chow Tai Seng Jewelry, said sales this year are expected to increase by about 30 percent over the previous year, and the company will maintain this robust growth momentum in the next few years.”

via All that glitters is sold |Economy |chinadaily.com.cn.

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27/09/2012

* Japanese Car Plants in China: Who’s Feeling the Heat?

WSJ: “Explosive anti-Japanese sentiment in China forced Toyota, Honda and Nissan to idle factories across the country this month. Media reports suggest that fresh shutdowns may be coming again in October.

Halting production is never good news. But who’s got the bigger headache – the Japanese or the Chinese?

There is no question that Toyota, Nissan and Honda will lose sales and market share to competitors. It’s already happening. And lost sales matter because China accounts for 15% of global profits at Toyota and Honda and as much as 25% at Nissan.

And yet, the pain could become even greater for China.

All Japanese cars made in China are produced at joint-venture factories owned on a 50-50 basis with Chinese partners. When the plant doors close, Chinese executives who run those joint ventures will immediately confront two frightening realities: a dramatic drop in revenue and tens of thousands of idle workers.

Take Hong Kong-listed Guangzhou Automobile Co for example. GAC, a subsidiary of the powerful Guangzhou municipality, runs world-class car assembly joint ventures with Honda and Toyota that employs just under 13,000 people.

Guangzhou Honda and Guangzhou Toyota also buy car parts from hundred of suppliers based in Guangdong province that employ tens of thousands of more people. Honda and Toyota products are sold through more than 900 dealers owned by Chinese business people. Count several more thousands of jobs there.

As China steps its way through a delicate political transition expected to formally begin in October, the last thing the leadership in Guangzhou wants to deal with is a crush of workers with too much time on their hands. If an argument between workers at a Foxconn 2038.HK +0.78% plant in Taiyuan can trigger rioting by thousands, imagine what might happen should Guangzhou workers start wondering about future job security.

Guangzhou Automobile isn’t an isolated case.”

via Japanese Car Plants in China: Who’s Feeling the Heat? – China Real Time Report – WSJ.

05/03/2012

* Wukan village elects own committee – hint of Jasmin Spring?

Xinhua: “Thousands of people in south China’s village of Wukan went to polls Saturday to elect a new village committee, several months after staging massive protests over illegal land sales and other issues. The villagers cast their ballots at a voting center set up on a village school campus from 9 a.m. through 3 p.m. Saturday. The results are due late Saturday night. Twenty-two candidates delivered public speeches on Wednesday to woo votes. The village committee includes at most seven members, including a chief and two deputy chiefs. A 50-percent turnout is required to validate the election results, and winning candidates are required to take at least half of the votes. An additional election would be held Sunday if fewer than three people obtain the required number of votes. Saturday’s voting marked the last phase of a three-phase election that has resulted in the selection of an 11-member election committee and 109 village representatives thus far. Voters are required to show identification and obtain written authorization before they can cast their votes. The voter turnout was 81.4 percent Saturday, sustaining the high levels seen during the last two elections and indicating the villagers’ enthusiasm for more open and transparent direct elections. (Xinhua/Liang Xu)”

http://news.xinhuanet.com/english/photo/2012-03/03/c_131444377.htm

Last year, Wukan defied authorities and there was a major stand-off with security forces surrounding the village as it protested against illegal land grabs by the local authority and the mysterious death of a protester in custody. Surprisingly, instead of a violent end, the authorities backed off.

This year it held it elections as usual, but with one major difference. It could choose who to vote for and not only those pre-selected by the Party. This may seem like a small thing. But, perhaps it could also be the opening of Pandora’s box and local elections may never be the same again in China. And, who knows, maybe there will be free elections for district and county level in due course. And, one day, free elections at national level. BUT, if you are a pro-democracy person, I do not recommend you holding your breath for such a day soon.

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